- Shipments from China to the US fell sharply last month as the trade war kicked off.
- Chinese exports dropped 21% from a year ago.
- Trade is picking up between China and its neighbors, data shows.
The first hard data to emerge from the US-China trade war shows trade between the world’s two biggest economies is already way down.
Chinese exports to the US tanked 21% in April compared to a year ago, according to customs administration data cited by Bloomberg. Imports from the US into China fell nearly 14% year over year.
Trading volumes have dropped as a result of the punitive tariffs both countries have imposed after President Donald Trump ramped up duties on imports from China to 145% last month.
Port authorities have been on the lookout for trade ramifications to bubble up, warning that tariffs could significantly shrink inventories in the US and lead to price hikes.
Last month, Apollo’s top economist predicted empty shelves would start appearing in May and the US would fall into a recession by the summertime.
Imports from China in 2024 totaled $438.9 billion, making the country America’s second-biggest trading partner.
China has found alternatives to US markets for the time being. Data shows that total Chinese exports surged 8.1% in April, with Asian markets leading the increase.
Volumes to India and the ASEAN trade group, made up of 10 Southeast Asian economies, rose by more than 20%.
US investors and economists hope tensions will ease this weekend as the US and China hold trade negotiations.
President Donald Trump on Friday said that 80% tariffs on China “seems right,” which would mark a significant reduction from 145% while still remaining higher than any previous duties.
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